q19. fill in most appropriate word choose from words in the parenthesis (_____) The demand for...
q19. fill in most appropriate word choose from words in the parenthesis (_____)
The demand for Bayer Aspirin is likely to be (elastic, inelastic)_______ because it is (essential, substitutable, scarce),_______ though the fact that it accounts for a (large, small) _____ share of the typical American’s budget makes demand (more, less) _______elastic.
Homework Answers
1. Inelastic. The demand for bayer Aspirin islikely to be inelastic because it has fewer substitutes which makes the demand curve relatively inelastic.
2. Essential. Since it is also an essential item which is mainly needed for healthcare purposes and this is also one of the reasons that make the demand curve relatively inelastic.
3. Small. A consumer only spends a small proportion of income on the budget of this good.
4. Less. All the factors mentioned above, makes the demand curve of Bayer Aspirin less elastic.
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